In a report released yesterday, Brendan Smith from TD Cowen maintained a Buy rating on Cytek Biosciences (CTKB – Research Report), with a price target of $7.00.
Brendan Smith has given his Buy rating due to a combination of factors influencing Cytek Biosciences’ outlook. Despite the initial FY25 revenue guidance falling short of consensus expectations, it still indicates a year-over-year growth, suggesting that the company is likely gaining market share even amidst challenging conditions. The management has proactively addressed potential headwinds such as tariffs, NIH uncertainties, and export controls, which are factored into their guidance, demonstrating a strategic approach to navigating these challenges.
Additionally, the company’s global manufacturing presence provides a level of resilience against these market obstacles. The growth in service revenue and the expansion of their installed base further bolster their long-term prospects. Although the price target was adjusted downward to reflect these challenges, the differentiated product profile and growth in key markets like Asia Pacific and Rest Of World support a positive outlook, justifying the Buy rating.